KUALA LUMPUR (Nov 20): Petron Malaysia Refining and Marketing Bhd saw its net loss widened to RM8.66 million or 3.2 sen per share in the third quarter ended Sept 30, 2014 (3QFY14) from RM4.89 million or 1.8 sen per share previously.

It attributed the profit deterioration to the steep oil price drop during the quarter which resulted in weak margin as higher-priced inventory was sold at lower prices.

Revenue in 3QFY14 slipped 7% to RM2.62 billion from RM2.81 billion previously.

Petron did not declare any dividend in 3QFY14.

For the cumulative nine months ended Sept 30, 2014 (9MFY14), Petron saw its net loss trimmed to RM16.89 million or 6.3 sen per share from RM17.82 million or 6.6 sen per share a year ago on a 9% increase in domestic sales volume to 14.6 million barrels from 13.4 million barrels.

Revenue in 9MFY14 grew 3.5% to RM8.61 billion from RM8.32 billion previously.

On prospects, Petron Chairman Ramon Ang said in a media statement this evening that its improving sales volume and various programmes instituted should cushion the effects of global oil price volatility.

“The company is confident about its prospects here since it is a major participant in one of Asia’s fastest growing economies. Petron is also optimistic of its growth prospects amid weakness in global oil prices,” Ang said.

To recap, Petron – which operates a refinery of 88,000 barrels per day in Port Dickson, Negri Sembilan – slipped to a loss in 2QFY13, blaming thin margin and foreign exchange loss.

In comparison, its competitor Shell Refining Co (Federation of Malaya) Bhd, which operates a refinery of 156,000 barrels per day in Port Dickson, has also been loss making since 2011, laying the blame on stockholding losses and tightened refining margins.

Shell Refining’s cumulative net loss for 9MFY14 widened to RM271.86 million or 90.62 sen per share from RM118.63 million or 39.54 sen per share, while revenue marched 3.6% to RM11.33 billion from RM10.94 billion previously.

Petron currently has 562 retail stations nationwide, with another 30 new stations in various stages of construction, while Shell has more than 900 retail stations nationwide.

Shares in Petron has fallen by 10.82% from RM3.04 on Apr 25 to close at RM2.71 this evening, giving it a market capitalisation of RM731.7 million.

Meanwhile, shares in Shell Refining has appreciated by 3.4% from RM5.50 on July 31 to close at RM5.69 this evening, giving it a market capitalisation of RM1.71 billion.